This is the fifth time in the space of four months in which the SBP has slashed the policy rate. After the latest cut, Pakistan’s interest rate is now the same as countries such as Azerbaijan, Ethiopia, Kenya, Maldives, Tanzania, and Uganda. In this way, the benefits of interest rate reductions would be passed on in a timely manner to households and businesses,” the statement read. ‘RATE CUT WAS EXPECTED’:After the previous interest rate cuts of April and May were announced, many analysts felt that SBP would reduce the policy cut even further in light of the global pandemic, and falling inflation. “The key objective of 100bps reductions in interest rate is to pass-on the impact on loan borrowers.

Source: Pakistan Today June 25, 2020 14:37 UTC